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Joseph Weisenbloom
  • Investor
  • Austin, TX
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Late on rent but hasn't moved in yet. How would you handle this situation?

Joseph Weisenbloom
  • Investor
  • Austin, TX
Posted

I signed a new tenant that was supposed to move in August 28th. Deposit was paid and lease signed with rent supposed to be paid on day of move in.

A week before move in I get the text that they have been in a car accident and can't move in on the 28th. They are injured and have medical bills etc.

My lease states $50 late fee after 3 days late on rent. Normally if anyone is anymore than 5 days late I am starting the eviction process.

Now I am in the weird position where they haven't paid the rent but also haven't moved in. Their next paycheck is Sept 11th and said they can pay all the fees then but that is 2 weeks after the start of the lease.

How would you handle this? Should I continue with this lease? How do you end the lease on someone that hasn't even moved in yet? Is there anyway I can charge a bigger late fee because of the longer payment delay?

Thanks!

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Marc Winter
  • Real Estate Broker
  • Northeast PA
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Marc Winter
  • Real Estate Broker
  • Northeast PA
Replied

"Stuff" happens in this life--the unexpected is to be expected. However, unless you are running a charity instead of a rental business, I'd stick to your lease.

Was the first month's rent paid? If not, why not? Make sure your policies about move-in, what's due and when, how to pay, are crystal clear; ff it's not clear, understood by both parties, and AGREED to, you're asking for problems.

How much of a deposit was given? If full month, and as @Richard F. said, 'in good funds', just follow your lease. If they're late, charge your late fee. If they're past due per your lease, file the proper paperwork to protect your legal calendar.

Of course we can still be kind, understanding, and professional--but let the tenant (client) know that you understand their situation and empathize, however, you must protect yourself and your property.

It's a business. Run it like one.

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